Quote:
Originally Posted by Paul&John
It doesn't disappears, but it definitely won't get back into the pocket of the government who handed it out - so basically in the long run, the government will run out of money. No matter what happens the government will get back only up to 20% of it (according to our example here). And yes you can print money, but not with that speed.. if they get back only 20%, then it means they need to devalue the money 5x each month (basically an inflation of 500% each month). So in January a bread costs $1, next month it should cost $5 to keep up the money flow..
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no the government has a pre printed pool of money, the tax rate should be able to sustain an entire country, in theory of course...now if the country over spends then its in shit...but those 300$ get spent a few times per month they do not just sit...poor mans capital is liquid he does not have savings...it circulates...upon each transaction the gov makes $...
and you can not use inflation as an argument the USA exports its inflation by forcing the US$ as a "world reserve currency" and by making everybody sell oil for US$ so it creates false demand and this raises the value...the US gov is a dirty player...